A Spatial Knowledge Economy
AbstractLeading empiricists and theorists of cities have recently argued that the generation and exchange of ideas must play a more central role in the analysis of cities. This paper develops the first system of cities model with costly idea exchange as the agglomeration force. Our model replicates a broad set of established facts about the cross section of cities. It provides the first spatial equilibrium theory of why skill premia are higher in larger cities, how variation in these premia emerges from symmetric fundamentals, and why skilled workers have higher migration rates than unskilled workers when both are fully mobile.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18188.
Date of creation: Jun 2012
Date of revision:
Note: ITI LS
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Find related papers by JEL classification:
- F1 - International Economics - - Trade
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-01 (All new papers)
- NEP-GEO-2012-07-01 (Economic Geography)
- NEP-MIG-2012-07-01 (Economics of Human Migration)
- NEP-URE-2012-07-01 (Urban & Real Estate Economics)
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- Holger Breinlich & Gianmarco I. P. Ottaviano & Jonathan R. W. Temple, 2013.
"Regional Growth and Regional Decline,"
CEP Discussion Papers
dp1232, Centre for Economic Performance, LSE.
- Holger Breinlich & Gianmarco I.P. Ottaviano & Jonathan R.W. Temple, 2013. "Regional growth and regional decline," Economics Discussion Papers 729, University of Essex, Department of Economics.
- Breinlich, Holger & Ottaviano, Gianmarco & Temple, Jonathan, 2013. "Regional Growth and Regional Decline," CEPR Discussion Papers 9568, C.E.P.R. Discussion Papers.
- Kohei Nagamachi, 2013. "Comparative Advantage and Skill Premium of Regions," Economics Bulletin, AccessEcon, vol. 33(3), pages 1681-1694.
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